Uncle Nearest Suit: Asset liquidation underway

10 Codman Spring Rd. in Edgartown, Mass.

DUANE CROSS
MCO Publisher•Editor

A court-appointed receiver in the federal case with Uncle Nearest Inc. has asked for quick approval to sell a luxury property in Martha’s Vineyard for $2.595 million, according to a motion filed Wednesday, Feb. 25, in U.S. District Court.

Phillip G. Young Jr., the receiver in the Farm Credit Mid-America, PCA v. Uncle Nearest, Inc. case, has asked the court to approve a private sale of real estate and personal property at 10 Codman Spring Rd. in Edgartown, Mass.

• Receiver’s Expedited Motion

Full-Price Offer Received

The filing states the property was listed for sale on Jan. 26 at $2,595,000. On Feb. 18, the receiver got a full-price offer, pending inspection and partial financing. The planned closing date is March 19, so expedited court approval is needed.

The motion names Jennifer Kaalund and Sekou Kaalund as the buyers. The sale would be private, with Jennifer DaSilva from Point B Realty as the agent.

Sekou Kaalund and Fawn Weaver are both small business motivational speakers with the Harry Walker Agency.

The receiver also said there are two backup offers at the full asking price.

Property Generates No Income

Young was appointed by a previous court order to manage the business affairs of Uncle Nearest and related companies, including UN House MV LLC, which owns the Martha’s Vineyard property.

The receiver says in the motion that the property does not generate income and was bought only for marketing and advertising. Since the receivership started, the estate has paid monthly maintenance costs without making any money from the property.

Young said selling assets that do not produce income is best for the creditors and the estate.

Liens and Distribution of Proceeds

The property has a first lien of about $1.5 million held by Planet Home Lending LLC, which will be paid in full from the sale proceeds.

Farm Credit Mid-America PCA holds a second lien of about $120 million. Farm Credit has agreed to the sale and will release its lien in exchange for the remaining proceeds after the first lien and closing costs are paid.

The receiver estimates Farm Credit will get about $900,000 after commissions and standard closing costs.

The motion notes that the defendants, through their lawyers, have refused to agree to the sale.

Commission and Sale Terms

A 5% broker’s commission will be paid under the listing agreement. The property will be sold “as is, where is,” with no promises or guarantees about the personal property included in the sale.

The receiver says the sale is an arms-length deal and not to anyone connected to Uncle Nearest or the receiver.

Expedited Request

Young says court approval is needed to meet the March 19 closing date and that a hearing is not required. He points to the benefit to the estate, a full-price offer, creditor consent, and a quick reduction in ongoing costs, including a pending $12,000 landscaping bill, as reasons for expedited approval.

In the motion, the receiver asks the court to approve the sale, agree to the terms, allow the signing of the necessary documents, and, if the current buyers do not close, allow the property to be sold to another arms-length buyer at or above the listing price.